The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-06-25

/ all daily balance. lated monthly, balances
| of over So. 000to lifted three times monthly
| In New York e, 4ge cash. For making
these collections no charge would be made:
It., /. also offered to collect Cincinnati
per g, 900, r. twenty cent. per $500. For this
the indianapolis banks charge from fifty cents
| to 81. 50 Late last month the Fidelity sent cut
80, $4,000, and was the largest bank in Ohio
Reciprocity was invited and the bank promised
to credit cash items on all points in the United
States at par on the day OF receipt. subject to
check. Several indianapolis people were
tempted by the elittering offers and transferred
business TO the Fidelity, but they became
will be no loss in this city OF any significance.
Several had very narrow escapes. however. Two
days before the collapse one frm drew out Sc. 900,
while q large milling company. on the last day
of the banks existence, drew out all but few
hundred dollars.
How the Bank Secured Reserve Accounts
Interview in Cincinnati Commercial.
ut was reported from Washington" the re-
porter suggested, '.that tho attention OF the
Comptroller attracted to the Fidelity
through the medium of anonymous communica-
tions rejecting upon the bank from Cincin-
nati?"
THAT was not the source of information" )"
Mr.. Trenholm replied. 'True, lot of printed
circulars and some anonymous letters were re-
ceived. attacking the bank. Then, too we re-
ceived signed letters from people in Cincinnati
of the same tenor. l did not know the author
of the communications but the suppositon is in
all such cases that the people who take the
trouble to write them may have been on the
other side in the speculation, and a public Off
cial cannot take action such information as
that
II had been for some time continued the
Comptroller, anxious about the Fidelity, and
Ill tell you precisely what led to it Early
In April was studying up the statistics in the
nf h1 1n1- nfA - et.. 49,,
the question of the effect of the reserve furd
law. wiehed to ascertain how the law WAS
working, or was observed in anticipation with
my annual report. The law. ron perhaps know,
requires that banks in reserve cities shall carry
% per cent of deposits a reserve fund. In
non-reserve cities. country towns, the banks
are required to carry but 15 per cent. / OBJ
served. during my studies of the statistics. that
there was in each reserve city number OF
banks that seemed to have been selected the
reserve-keepers by an exceptionally large num-
Der OF country banks, and wherever that was the
case had list made out of the ntry banks
that kept its reserve with each one of these par
ticularly noticeable city banks.
Well the Comptroller continued, "the FiS
deity National Bank, of Cincinnati, was one Of
them: found that the Fidelity had been se-
lected as reserve agent by eighty national
banks located in different parts of the United
States What especially noticed was that some
OF these banks wore located in places where one
would never have expected any special financial
relations to exist with the city of Cincinnati
The inference. therefore, that drew from thif
fact was that the Fidelity was probably saying
pretty dearly for these accounts, and mus. have
been Offering some especially attractive terms.
This led me to look into their reports of condi-
tion at the previous time and at the last exam
iners report and also to look somewhat into the
antecedents of the banks officers. Then OBJ
tanned information about the connection of some
Of the officers of the Fidelity with the Third
National, and as early April last indi-
Gated TO the examiner the result of those inves-
legations, and notified him to keep an especial
watch on the Fidelity National. and to keep ms
I'M fn fiy,,n nf uhutA ss~-
formation he could gather in regard to it; but al
the same time warned him to do nothing or say
nothing that could in any way injure the busi.
ness or standing of the bank.
On the 18Th OF May last continued Mr. Tren.
holm, II called for statement of condition Of
all the banks in the United States. and. among
Others, received the report of the condition OF
the Fidelity. In that report I found that this
bank had about So. .000 900 Of debts due to nation
al banks. State banks and private banks, which
was more than half of their indebtedness. Thia
was an unusual condition of things for a bank,
and thought it indicated q definite policy on the
part of the managers of the Fidelity to make a
specially of the accounts of country banks. AT
the same time, however. found that the Fidel-
itv reported very large amount of money on
hand in excess of she leea! requirements for res
serve and, as far as the report went the institus
tion seemed to be in a fourishinR condition. l
also found that the stock was selling at high
price; that the directors included some CT the
wealthy and sound business men Of the city; that
the bank was about to double its capital. and
that she new stock was being subscribed for at
l35.
Under these circumstances. it didn't seem tS
mo, as it was comparatively new bank, that
there was any danger OF immediate trouble but
at the Same time felt satisfied that in case Of
any monetary stringency the bank would oe inn
periied, because invariably country BANKS draw
their accounts down very low at such times.
They are an unsafe sort of accounts for any
bank to have too much of. but at that time thu
Chicago wheat deal hadn't attracted much at
tenrion, and while knew there was some specu-
lation there, didn't any reference whatever
a
and there was nothing to lead me to think or to
suggest the idea of any connection between this
bank and the Chicago wheat deal
sOf course" continued Mr. Trenholm "the
moment the report got out that this bank was
connected with that deal. then l Immediately
saw the purpose for which all these unusual
efforts were to gather in money from various
quarters: and felt satisfied that the reports
were more or less true. but there overt
act on the part Of the bank 1t was mere
lecture my part, and that isn't enough to go
on in taking any serious steps in connection with
a bank knew that precpitate examination
or any Indication OF . lack of confidence. would
Immediately embarrass the bank, and moth
ing was done right away. What followed. the
public now thoroughly knows"
Harper's Real Name Said To BE Hopper
wiiiamsport Pa, Special
E. L. Harper, whose recent speculations in
the Chicago wheat market have ruined the FL
deity National Bank, of Cincinnati, was born
and raised in Montoursville, this county, and
comes from old and weil-known family there.
His right name is Edward L. Hopper, and his
father was Joseph Hopper. now dead twenty
years. Everybody in Montoursville remembers
Harper and his family. He was an ordinary
boy and did not seem to amour. to much while
he lived there. His mother married Mr. Nc
Gonnell, of Fairfield township, few years
after the death of his father, andis now a widows
still living in Fairfield township. The Cincn-
natl banker is a brother of John Hopper.
formerly of this city. who is
log-driver at Driftwood another
brother Thomas Hopper, is workman at
Tinsman mill, this city; sister married VIM. p.
Mccormick, a brother of ex-Sheriff Mccormick,
of Montoursville and another sister, Rebecca, is
the wife Of Isaac Conkle. of the First ward, this
city. Harper has three brothers living in Gin
cinnati, Charles. William and Frank. one of
whom preceded him to the Queen City. Edward